Ohio Dealer Compliance Hub
Staying compliant is one of the hardest parts of running a dealership, and Ohio dealer compliance spans federal rules, state rules, and rules that change with little warning. This hub is NOADA’s plain-English, openly published reference to the compliance topics Northeast Ohio dealers ask about most: the FTC Safeguards Rule, the status of the FTC CARS Rule, advertising rules, the dealer registration/titling service fee, and temporary-tag rules. We publish it openly, no login, because dealers should be able to find accurate answers fast. It is a starting point, not legal advice; verify current rules with the cited sources and your own counsel before you act.
This is general information, not legal advice. Rules and fees change, and specific dollar amounts, caps, thresholds, and time limits are set by regulators and updated over time. Confirm current requirements at ftc.gov, bmv.ohio.gov, and with the Ohio Attorney General and your attorney. NOADA members get deeper support through member compliance support.
Quick reference
| Topic | Current status | Who enforces |
|---|---|---|
| FTC Safeguards Rule | In effect. Written info-security program required; a breach-notification amendment applies. | FTC |
| FTC CARS Rule | Vacated and withdrawn, not in effect. | FTC (rule struck down) |
| Advertising rules | In effect: federal (FTC Act) plus Ohio Consumer Sales Practices Act / Ohio Admin. Code. | FTC, Ohio AG |
| Dealer service fee | Optional, capped, and condition-based. Confirm the current amount and rules. | Ohio AG / BMV |
| Temporary tags | In effect, with a set validity period and a cap on what a dealer may charge. Confirm current figures. | Ohio BMV |
FTC Safeguards Rule
The FTC Safeguards Rule (under the Gramm-Leach-Bliley Act) treats auto dealers as “financial institutions” because they arrange financing and leasing. It is in effect and actively enforced, and it is the federal compliance obligation most likely to catch a dealership off guard.
What it requires
Dealers that are covered must develop, implement, and maintain a comprehensive written information security program (WISP) reasonably designed to protect customer information. Core elements include:
- A designated “Qualified Individual” responsible for the program.
- A written risk assessment of where customer data lives and how it could be exposed.
- Access controls limiting who can reach customer information.
- Encryption of customer data in transit and at rest (or an approved alternative).
- Multi-factor authentication (MFA) for anyone accessing customer information.
- Service-provider / vendor oversight - selecting and monitoring third parties that touch your data.
- An incident response plan for security events.
- Ongoing monitoring, testing, and staff training, with a periodic written report to leadership.
Breach notification
An amendment to the Safeguards Rule requires covered financial institutions to notify the FTC of a qualifying notification event involving unencrypted customer information, above a set size threshold and within a set window after discovery. The specific threshold and timeline are set by the FTC, so confirm the current figures at ftc.gov before relying on them.
FTC dealer guidance
The FTC has published a dedicated set of Safeguards Rule FAQs for auto dealers, addressing OEM relationships, third-party vendor access, and how the rule applies in a dealership environment. Compliance is an ongoing operational program, not a one-time document you write and file away.
Where NOADA helps: member document shredding with a compliance audit, compliance education, and member compliance support.
FTC CARS Rule - current status
There is widespread confusion here, so be precise: the FTC’s Combating Auto Retail Scams (CARS) Rule is NOT in effect.
- The FTC finalized the CARS Rule to impose new advertising, pricing-transparency, and add-on/financing-disclosure requirements on dealers.
- A federal appeals court (the U.S. Court of Appeals for the Fifth Circuit) vacated the rule, finding the FTC had not followed a required procedural step.
- The FTC subsequently formally withdrew the CARS Rule to conform to the court’s decision.
What this means for dealers: the specific CARS Rule disclosure mandates do not apply. But the conduct CARS targeted, including deceptive advertising, hidden fees, bogus add-ons, and misrepresentations, is still illegal under the FTC Act and Ohio consumer-protection law, and the FTC and Ohio Attorney General continue to bring enforcement actions on those grounds. Do not read “CARS is gone” as “anything goes.” The FTC has signaled continued interest in the motor-vehicle space, so check ftc.gov and NADA for any new rulemaking activity.
Advertising rules
Even without CARS, dealer advertising is heavily regulated. Two layers apply:
- Federal - the FTC Act prohibits unfair or deceptive acts or practices. Truth-in-advertising principles apply to price, availability, financing terms, rebates, and add-ons. Federal Truth in Lending (Reg Z) and Consumer Leasing (Reg M) govern how credit and lease terms may be advertised (trigger terms require specific disclosures).
- Ohio - the Consumer Sales Practices Act (CSPA) and the Ohio Administrative Code’s motor-vehicle advertising rules, enforced by the Ohio Attorney General, set specific requirements for Ohio dealer advertising.
Advertising do’s and don’ts (general)
- Do advertise a price any qualified buyer can actually get, and disclose material conditions clearly and conspicuously.
- Do honor advertised prices and clearly state the number of vehicles available at an advertised price (and stock numbers where required).
- Don’t bury fees, use bait-and-switch tactics, or advertise terms only some buyers qualify for without clear disclosure.
- Don’t misstate rebates, financing, “dealer cost,” or trade-in promises.
- Mind add-ons: charging for products the customer didn’t agree to, or that provide no benefit, is a classic enforcement target.
For the specific Ohio Administrative Code motor-vehicle advertising provisions and current guidance, confirm with the Ohio Attorney General before building a detailed checklist.
Where NOADA helps: advertising and compliance topics in seminars and webinars and the on-demand library.
The dealer registration/titling service fee
Ohio amended its Motor Vehicle Dealer Registration and Titling Service Fee rule, and the change is significant for how dealers itemize deals.
- A dealership may charge a customer a capped service fee for providing registration services and/or third-party electronic titling services that the dealer pays for. The maximum amount is set by the rule.
- The fee may be charged only once per vehicle transaction, even if the dealer performs both registration and titling services.
- Critical condition: the fee is allowed only when the dealer uses a paid third-party electronic titling provider. If the dealer uses the Ohio BMV’s free electronic titling option, the fee may not be charged.
- Itemization: the service fee must be separately itemized on the Buyer’s Order or Lease Order and must not be folded into the government title/registration fee lines.
This is a fee ceiling and a set of conditions, not a mandate, and getting the itemization wrong is exactly the kind of paperwork issue that draws scrutiny. Confirm the current maximum amount, the effective date, the once-per-transaction rule, and the itemization requirements at bmv.ohio.gov and with the Ohio Attorney General before relying on them.
Remember the Ohio split: vehicle titles are issued by the County Clerk of Courts title office, while registration and plates are handled by BMV deputy registrars like the Akron BMV that NOADA operates. For dealer title processing, see title services.
Temporary-tag rules
Ohio’s temporary-tag rules are strict and have drawn increased BMV enforcement, so dealers should follow them exactly.
| Rule | Requirement |
|---|---|
| Validity | A set validity period from issuance; not transferable or renewable |
| When a dealer may issue | Only on a vehicle the dealership sold, and only when the customer has no plate to transfer |
| Customer attestation | Customer must sign a statement that they had no plate to transfer |
| One per customer/vehicle | A dealer may issue only one temp tag per customer per vehicle |
| Multiple-tag penalty | Issuing multiple temp tags for a customer in a short period can put the dealership on probation |
| Recordkeeping | Keep an accurate log; notify the Dealer Licensing Section as required |
| Issuance method | Issue electronically via dealer computer equipment (unless otherwise authorized) |
| Customer charge | The amount a dealer may charge the customer is capped by the rule |
Confirm the current validity period, the charge cap, and the attestation, logging, and enforcement requirements at bmv.ohio.gov before relying on them.
A dealer compliance quick-checklist
Use this as a starting self-audit - not a substitute for legal review:
- Written information security program (WISP) in place, with a named Qualified Individual
- MFA enforced for access to customer information; data encrypted
- Vendor/service-provider oversight documented
- Incident response plan written; breach-notification process understood (FTC threshold and timeline confirmed at ftc.gov)
- Advertising reviewed against FTC Act + Ohio CSPA (price, availability, financing, add-ons)
- Service fee charged only with a paid third-party e-title provider, once per deal, within the cap, itemized correctly
- Temp tags: sold-vehicle only, no-plate attestation signed, one per customer/vehicle, logged, within the charge cap
- Staff trained; records retained; current rules re-verified at the source
Frequently asked questions
Is the FTC CARS Rule in effect? No. A federal appeals court vacated the CARS Rule and the FTC formally withdrew it, so its specific disclosure mandates do not apply. However, deceptive advertising and hidden-fee practices remain illegal under the FTC Act and Ohio law.
Does the FTC Safeguards Rule apply to my dealership? Almost certainly, if you arrange financing or leasing. Covered dealers must maintain a written information security program with a Qualified Individual, risk assessment, encryption, MFA, vendor oversight, an incident response plan, and ongoing testing and training. The FTC has published auto-dealer-specific FAQs at ftc.gov.
Can I charge the dealer service fee on every deal? Only up to the rule’s cap, only once per transaction, and only when you use a paid third-party electronic titling provider, not when you use the BMV’s free e-title option. It must be separately itemized on the Buyer’s/Lease Order. Confirm the current amount and effective date at bmv.ohio.gov.
How long is an Ohio temporary tag valid, and what can I charge? A temp tag has a set validity period and is not renewable or transferable. Dealers may issue one per customer per vehicle, only when there’s no plate to transfer, and may charge the customer no more than the rule’s cap. Confirm the current figures at bmv.ohio.gov.
Who issues vehicle titles in Ohio - the BMV? No. Titles are issued by the County Clerk of Courts title office. The BMV deputy registrar (like the Akron BMV) handles registration and plates. Keeping that split straight avoids deal delays.
Where can members get more than this public hub? NOADA members get deeper compliance support, compliance education, document shredding with a compliance audit, and direct support. Join NOADA to access it, or call (330) 272-9011.
Stay compliant with NOADA
- Join NOADA - member compliance support, education, and shredding/audit
- See compliance seminars & webinars - advertising, Safeguards, F&I
- Dealer title services - correct handling of the Ohio title/registration split
- Questions? Call NOADA at (330) 272-9011